Prime Minister's Office
English rendering of Prime Minister’s Statement after the Union Budget 2020-21
I congratulate Finance Minister Nirmala Sitharamanji and her team for the first budget of this decade, which has a vision as also an action.
The new reforms announced in the budget will help to accelerate the economy, financially empower every citizen of the country and strengthen the foundation of the economy in this decade.
The main areas of employment are agriculture, infrastructure, textiles and technology. A great emphasis has been laid on these four aspects in this budget to increase the employment generation.
With a view to doubling the income of the farmers, 16 action points have been created which will generate more employment in rural areas. Integrated approach has been adopted for the agriculture sector in this year's budget, which along with the traditional methods, will enhance value addition in horticulture, fisheries, animal husbandry and will also generate more employment. Under the Blue Economy, the youth will also get new opportunities in the field of fish processing and marketing.
A new mission for technical textile has been announced. The duty structure of the raw material used in the production of manmade fibre in India has also been reformed. There was a high demand for this reform for the last three decades.
Ayushman Bharat Yojana has given a new impetus to the health sector of the country. A huge of scope has been created for human resources - doctors, nurses, attendants as well as medical device manufacturing in this sector. New decisions have been taken by the government to enhance it.
In this budget, we have made several special efforts to promote employment generation in the field of technology. A number of policy initiatives have been taken in the areas such as new smart cities, electronic manufacturing, data centre parks, biotechnology and quantum technology. Consequently, India will move strongly towards becoming an integral part of the global value chain.
In the budget, new and innovative initiatives have also been announced in terms of skill development of the youth. For example, apprenticeships in degree courses, internships in local bodies and the provision for online degree courses. Bridge courses are also being arranged for the youngsters from India who want to go abroad for jobs.
The export and MSME sector drives the employment generation. The budget has announced new schemes to increase exports. Several new initiatives have been taken for financing small enterprises.
Modern infrastructure is crucial for modern India. The infrastructure sector is also a large employment generator. The 65 hundred projects at a cost of 100 lakh crore rupees will increase employment opportunities on a massive scale. The National Logistics Policy will also benefit the three sectors of trade, business and employment. The target of developing 100 airports in the country will give a new height to the flying experience of ordinary citizens, and a new impetus to India's tourism sector. We will boost the youth energy through start-ups and project development in the field of infrastructure.
Due to fundamental changes in the tax structure, the possibility of value addition in many sectors in India will also increase.
Investment is the biggest driver for employment. Some historic steps have been taken in this direction. Provisions are being created to strengthen the bond market and for long-term financing of the infrastructure.
Due to the removal of the Dividend Distribution Tax, 25 thousand crore rupees will come in the hands of companies which will help them in further investment. Various tax concessions have been given to attract foreign investment into India. Tax benefits have also been provided for start-ups and real estate. All these decisions will accelerate the economy and provide new employment opportunities to the youth.
Now we have embarked upon a journey towards ‘Vivad Se Vishwas’ in the system of income tax.
A major decision has been taken to de-criminalize some of the mistakes of civil nature in our company laws now. The rights of taxpayers will be explained by a taxpayer charter.
Our government has always relied on small entrepreneurs associated with MSMEs. Audit on turnover of up to Rs 5 crore will no longer be required. Another major decision has been taken which is about depositors' insurance. To ensure that the money of the depositors is safe in banks, the deposit insurance limit has been increased from Rs 1 lakh to Rs 5 lakh.
This budget has further strengthened the commitment of minimum government, maximum governance.
Provision of faceless appeal, new and simple structure of direct tax, emphasis on disinvestment, provision of universal pension through auto enrolment, move towards unified procurement system, are some of the steps which will reduce the government's presence in the people's lives and will enhance their ease of living.
Connecting Anganwadis, schools, health and wellness centres and police stations with broadband in one lakh gram panchayats under maximum governance will be a historic beginning.
Today the youth has to take many different exams for getting a government job. Changing this system, appointments will now be made through the online Common Examination taken by the National Recruitment Agency.
New arrangements will be made through Kisan Rail and Krishi Udaan schemes so that the farmers can easily market and transport their products.
I believe that this budget will increase income, investment, Demand and Consumption, as well as will reinvigorate the Financial System and Credit Flow.
This budget will meet the current needs of the country as well as the future expectations in this decade.
I once again congratulate the country, Nirmala ji and the Finance Ministry team for this budget.
Thanks a lot !!!